Published on: October 26, 2025, 07:33h.
Updated on: October 25, 2025, 04:04h.
- Colorado tribes barred from online sports betting
- Two Native tribes are contesting the prohibition in federal court
A federal judge has ruled unfavorably for two Native tribes in Colorado, concerning their attempts to establish online sportsbooks.
In a decision made on Thursday, Oct. 23, federal Judge Gordon Gallagher ruled in favor of the state’s assertion that tribal gaming within Colorado is restricted to sovereign territories. The Southern Ute Indian Tribe, later supported by the Ute Mountain Ute Tribe, filed a lawsuit against Colorado and Governor Jared Polis (D) in July 2024. They alleged that the state did not engage in good faith negotiations with the Native tribes, which have Class III gaming compacts permitting tribal casino operations on tribal land.
Following the launch of Colorado’s commercial mobile sports betting market in May 2020, the state mandated that online tribal sportsbooks cease their operations. Colorado attorneys contended that the Class III compacts only authorize state-approved gambling activities on tribal properties.
The tribes argued that legal precedents exist in federal courts indicating that the so-called hub and spoke model permits online sports bets to qualify as tribal gaming as long as the computer server facilitating the bet remains on sovereign land.
Judge Contradicts Florida Ruling
In 2023, federal courts in Florida supported Governor Ron DeSantis (R), the Seminole Tribe, and the US Interior Department in their stance that online sports betting is considered a tribal gambling activity if the sportsbook’s computer server is located on Seminole land. Judge Gallagher disagreed with this interpretation.
“This court holds that gaming occurs where the bettor is located. Therefore, the location of the bettor is the sole determining factor for whether gaming is considered to be taking place on Indian land,” Judge Gallagher stated.
He asserted that the Indian Gaming Regulatory Act (IGRA) permits tribal gaming solely on Native land.
“If the bettor is situated on Indian land, then the gaming activity qualifies as being on Indian land and is governed by IGRA. Conversely, if the bettor is off Indian land, such as in Denver, they are not participating in gaming on Indian land, and IGRA does not apply,” Gallagher elaborated.
The judge additionally mentioned that the state had indeed negotiated in good faith with the gaming tribes about online sports betting. He pointed out that Colorado had permitted the tribes to engage in online sports gambling, provided they too, like commercial operators, share 10% of their gross revenue and comply with regulations from the Colorado Division of Gaming.
“The tribes are sovereign nations. Nevertheless, their gaming capabilities are limited by IGRA, along with any waiver of immunity granted by the State of Colorado,” Gallagher remarked.
Expected Appeal
It is anticipated that the tribes will appeal the district court’s decision.
“We have great respect for Judge Gallagher and appreciate the attention he has given this matter. However, we believe federal law mandates a different outcome and will evaluate our next steps in the coming weeks,” stated the Southern Ute Indian Tribe. “Our gaming compact with the state explicitly indicates that we are permitted to pursue all Class III games ‘that are explicitly authorized by the laws of the state.’”
Governor Polis’s office expressed satisfaction with Gallagher’s decision.
“We value the government-to-government relationship with the Ute Mountain Ute and Southern Ute Indian Tribes. We are pleased the court ruled in favor of the state, ensuring Colorado can manage sports betting in a manner that benefits Coloradans and support crucial water projects across the state,” the governor’s office commented.